By 6:30 a.m., a full hour and a half before the store would open, about two dozen people were already in line. They waited patiently, not for the latest iPhone, but for something far more basic: groceries. …Venezuela is one of the world’s top oil producers at a time of soaring energy prices, yet shortages of staples like milk, meat and toilet paper are a chronic part of life here, often turning grocery shopping into a hit or miss proposition. Some residents arrange their calendars around the once-a-week deliveries made to government-subsidized stores like this one, lining up before dawn to buy a single frozen chicken before the stock runs out. Or a couple of bags of flour. Or a bottle of cooking oil. The shortages affect both the poor and the well-off, in surprising ways. A supermarket in the upscale La Castellana neighborhood recently had plenty of chicken and cheese — even quail eggs — but not a single roll of toilet paper. Only a few bags of coffee remained on a bottom shelf. Asked where a shopper could get milk on a day when that, too, was out of stock, a manager said with sarcasm, “At Chávez’s house.” At the heart of the debate is President Hugo Chávez’s socialist-inspired government, which imposes strict price controls that are intended to make a range of foods and other goods more affordable for the poor. They are often the very products that are the hardest to find. …many economists call it a classic case of a government causing a problem rather than solving it. Prices are set so low, they say, that companies and producers cannot make a profit. So farmers grow less food, manufacturers cut back production and retailers stock less inventory. Moreover, some of the shortages are in industries, like dairy and coffee, where the government has seized private companies and is now running them, saying it is in the national interest.

Here’s a chart that I’ve used before, using international data to compare living standards in Venezuela, Argentina, and Chile since 1980. One nation (take a wild guess) has tried statism, one nation has tried a mix of statism and capitalism, and the other has tried capitalism.

[…] has a law against “price gouging,” which means politicians there (just like the politicians in places like Venezuela) think they should get to determine what’s a fair price rather than allow (gasp!) a free […]

[…] against “price gouging,” which means politicians there (just like the politicians in places like Venezuela) think they should get to determine what’s a fair price rather than allow (gasp!) a free […]

Yet the story’s writer does not seem to see folly in price controls; just these price controls apparently. Too low. If only the right thumbs were on the scales. NYT after all. “At Chavez’s house” is likely a truism, not sarcasm.

At the end of WWII shortages of goods in Berlin were solved by one German bureaucrat unilaterally deciding to end price controls. Poof, no more shortages. Abundance came into being. And these statist twits keep acting like it’s a mystery.

Since Obama has taken office the US is on a collision course with the very same things. Another four years of an Obama administration will cement a mirror image of VZ, the have nots in the USA do not see it, the people that are getting along have a blind eye to it presently. If Obama is re-elected there will be a huge sucking sound that is America going down the tubes as the EU is presently doing!